Banks Buying Gold

Central banks are buying gold. That may not seem like an odd thing considering Fort Knox, but;

“If central banks really had confidence in themselves, i.e. in paper money, they would get rid of all the gold in their vaults, sell it all off at high prices and put the proceeds into dollars, euros, yen or what have you. Instead they’re clinging onto this slightly primitive relic as something to hold on to if things really go down the drain” – David Marsh

Instead, Russia’s and China’s central banks account for almost 2,800 tons of gold purchases since 2008; and the western banks have shifted from selling to holding. Some are taking it as a model to mimic, even if they don’t know why central banks are buying the very thing they had been selling while also printing money. Others are taking it as a warning that the central banks feel uncertain about conventional currencies. In any case, add this to the list of weirdness in the world’s economies.